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AG&P, Air Liquide ink LNG MoU

Written by  Tuesday, 07 March 2017 20:51
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Philippines’ Atlantic, Gulf and Pacific (AG&P) has signed a memorandum of understanding (MoU) with Germany-based Air Liquide Global E&C Solutions to develop small-scale liquefied natural gas (LNG) infrastructure across Asia.

The duo will offer solutions for LNG distribution with a focus on liquefaction, transportation, and downstream infrastructure to deliver LNG to end users seeking LNG for power.

AG&P will integrate the technologies offered by Air Liquide with its expertise in planning, designing engineering, financing, and operating LNG infrastructure modules to build technologically advanced blocks that can plug into any part of the LNG supply chain.

“This milestone agreement with Air Liquide will enable the integration of downstream LNG infrastructure, including small scale regasification terminals, distribution hubs, truck loading stations and boil-off gas handling systems into AG&P’s LNG supply network for rapid delivery of tolled gas to last-mile customers,” said AG&P chairman Jose Leviste.

“Our aim is to streamline Air Liquide's know-how in gas processing technology and patents with AG&P's experience in design, engineering, and construction to bring the most competitive solutions to customers across Asia,” he said.

Both companies will begin developing standardized downstream LNG modules that optimize costs and shorten delivery time. The MoU also covers boil-off gas (BOG) management systems eliminating the need for investment in BOG compressors, while ensuring that no gas is vented or flared, bringing environmental and economic benefits to the customer.

Domenico D’Élia, vice president and chairman of Air Liquide said, “We chose AG&P to be our partner because of their reputation for innovation, safety record, and fast delivery. Through this agreement, we will be able to meet the dynamic requirements of customers in the vast region of Asia where small quantities of LNG need to be delivered efficiently to end-users scattered across vast distances.”

Last October at the 4th Annual Gas Asia Summit in Singapore, AG&P launched the concept of its ultra-shallow draft 4000 –8000m³ LNG carrier (LNGC), capable of accessing rivers and shallow harbors with a draft of only 2m. The firm will finance and build the LNGC in 16 months at its facility in the Philippines.

It is designed to serve as a workhorse for near-shore LNG milk-run deliveries to locations that have limited access including shallow rivers and restricted harbors with low water depth. It has a unique hull design that reduces the waterline entrance angle and vessel resistance in waves.

The LNGC can be ballasted in open water improving both stability and speed and does not need handling tugs. It can navigate open seas as well as riverine waterways with a minimum speed requirement as low as eight knots.

Speaking at the event, Derek Thomas, head of AG&P’s advanced research unit said, “LNG can be break-bulked, breaking larger LNG cargoes into smaller shipments and transported in small volumes over short distances using coastal tankers, specialized trucks, and trains to a variety of customers.

“The availability of a smaller scale delivery network through break-building has enabled both distributed power generation and a variety of industrial applications in various manufacturing and processing facilities. Our new scalable LNGC is a plug-and-play customizable supply solution that requires lower capital cost making LNG more accessible and economically viable for small or developing LNG import markets." 

Image: LNGC / AG&P

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